2006 New York Code - Remedies Of Bondholders And Noteholders.

 
    § 2440. Remedies of bondholders and noteholders. (1) In the event that
  the  agency  shall default in the payment of principal or of interest on
  any issue of bonds or notes after the same shall become due, whether  at
  maturity  or  upon  call for redemption, and such default shall continue
  for a period of thirty days, or in the event that the agency shall  fail
  or  refuse to comply with the provisions of this title, or shall default
  in any agreement made with the holders of any issue of bonds  or  notes,
  the  holders  of twenty-five per centum in aggregate principal amount of
  the bonds or notes of such issue  then  outstanding,  by  instrument  or
  instruments  filed in the office of the clerk of the county in which the
  principal office of the agency is located, and proved or acknowledged in
  the same manner as a deed to be  recorded,  may  appoint  a  trustee  to
  represent  the  holders  of  such bonds or notes for the purposes herein
  provided.
    (2) Such trustee may, and upon  written  request  of  the  holders  of
  twenty-five  per  centum in principal amount of such bonds or notes then
  outstanding shall, in his or its own name.
    (a) enforce all rights of the bondholders  or  noteholders,  including
  the  right  to  require  the  agency  to  collect interest and principal
  payments on the bonds held by it adequate to carry out any agreement  as
  to,  or  pledge of, such interest and principal payments, and to require
  the agency to carry out any other agreements with the  holders  of  such
  bonds or notes and to perform its duties under this title:
    (b) bring suit upon such bonds or notes:
    (c) by action or suit, require the agency to account as if it were the
  trustee of an express trust for the holders of such bonds or notes:
    (d) by action or suit, enjoin any acts or things which may be unlawful
  or in violation of the rights of the holders of such bonds or notes:
    (e)  declare  all  such  bonds  or  notes  due  and payable and if all
  defaults shall be made good then with the  consent  of  the  holders  of
  twenty-five  per  centum  of the principal amount of such bonds or notes
  then outstanding, to annul such declaration and its consequences.
    (3) Such trustee shall in addition to the foregoing have  and  possess
  all  the  powers  necessary  or  appropriate  for  the  exercise  of any
  functions specifically set forth  herein  or  incident  to  the  general
  representation of bondholders in the enforcement and protection of their
  rights.
    (4)  Before declaring the principal of bonds or notes due and payable,
  the trustee shall first give thirty  days'  notice  in  writing  to  the
  governor, to the agency and to the attorney general of the state.
    (5)  The  supreme court shall have jurisdiction of any suit, action or
  proceeding by the trustee on behalf of bondholders or  noteholders.  The
  venue  of  any  such  suit,  action,  or proceeding shall be laid in the
  county in which the principal office of the agency is located.
    (6) The remedies granted by this section shall not apply to  tax  lien
  collateralized securities. The remedies available to the holders of such
  securities shall be expressly limited to those set forth in the contract
  with the owners of such securities.